Prior to the signing of a final plat, issuance of a development permit, and/or the commencing of any clearing, grading or installation of improvements, the developer shall have filed with the borough a performance guarantee sufficient in amount to equal the total cost of the borough, as estimated by the borough engineer, of constructing those on-site, off-site and off-tract improvements necessary to protect adjacent property and the public interest in the event development of the subdivision or site were not completed. Such improvements shall include, but are not limited to, drainage facilities necessary to protect off-tract areas from flooding, erosion control facilities, required screening and fencing, all improvements within public rights-of-way and easements and the cost of seeding or otherwise stabilizing the site or subdivision. Such guarantee shall assure the installation of such improvements on or before an agreed date, guarantee the completion of all improvements without damage to or interference with adjacent properties or public facilities, and hold the borough council and the planning board and their employees and agents harmless with respect to any acts of the developer, its agents, successors or assigns. The total estimated cost to the borough of constructing all improvements shall be based upon the estimated contract construction costs which would prevail upon expiration of the guarantee period, and shall also include appropriate allowances for contract related costs such as engineering, legal, financial and other usual costs, which shall be estimated to be 20% of the estimated contract construction costs. Such performance guarantee may be in the form of cash, certified check, negotiable securities, a performance bond issued by a bonding company or surety company approved by the borough council, or any other type of surety acceptable to and approved by the borough attorney and borough council, provided that at least 10% of the performance guarantee shall be in the form of cash, certified check, or savings passbook or certificate of deposit drawn on an insured banking institution in the State of New Jersey; provided, however, that all rights, including the right to interest with dividends, be assigned to the borough in a form of assignment acceptable to the borough attorney for the period of the bond and that the principal amount of the passbook or certificate of deposit, together with interest, be returned to the developer upon completion of the bonded improvements, or in the event of default, both interest and principal shall be used by and for the benefit of the borough in the completion of said improvements.

If at the time the performance guarantee is filed with the borough, the developer has not also filed with the borough proof that any other necessary performance guarantees have been filed and accepted by governmental bodies, authorities, public utility companies, and private utility companies other than the borough, which have jurisdiction over improvements in the site or subdivision, the amount of the performance guarantee shall be increased to reflect the cost of such improvements.

All performance guarantees shall run to and be in favor of the Borough of Union Beach.

The performance guarantee shall be approved by the borough attorney as to form, sufficiency and execution. Such performance guarantee shall run for a period to be fixed by the borough council, but in no case for a term of more than two years. However, with the consent of the owner and the surety, if there be one, the borough council may, by resolution, extend the term of such performance guarantee for an additional period not to exceed one year. The amount of the performance guarantee may be revised by the borough council from time to time to reflect work progress, increasing costs and changing conditions in regard to the uncompleted or unacceptable portions of the required improvements, if the required improvements have not been installed in accordance with the performance guarantee, the obligor and surety shall be liable thereon, at the option of the municipality for:

If during the period of the performance guarantee the developer fails to prosecute the work of completing the improvements so as not to create hazards to life, health, property or public safety, the borough may, after five days' notice perform, or cause to be performed, any necessary corrective work and deduct the cost thereof from the 10% cash or certified check portion of the guarantee. Upon notice of any such deduction, the developer shall, within 10 days, restore the full 10% cash balance or his performance guarantee will be held to be void and the borough may take action as if final plat approval had not been obtained.

When all of the required improvements have been completed, the obligor shall notify the borough council in writing, by certified mail addressed in care of the borough clerk of the completion of said improvements and shall send a copy thereof to the borough engineer, which shall be accompanied by supporting documentation set forth in subsection 13-7.6g of this chapter. Thereupon the borough engineer shall inspect all of the improvements and shall file a detailed report, in writing, with the borough council, indicating either approval, partial approval or rejection of the improvements with a statement of reasons for any rejection. If partial approval is indicated, the cost of the improvements rejected shall be set forth.

The borough council shall either approve, partially approve or reject the improvements, on the basis of the report of the borough engineer and shall notify the obligor in writing, by certified mail, of the contents of said report and the action of said approving authority with relation thereto, not later than 65 days after receipt of the notice from the obligor of the completion of the improvements. Where partial approval is granted, the obligor shall be released from all liability pursuant to its performance guarantee, except for that portion adequately sufficient to secure provision of the improvements not yet approved; provided that 30% of the amount of the performance guarantee may be retained to ensure completion of all improvements. Failure of the borough council to send or provide such notification to the obligor within 65 days shall be deemed to constitute approval of the improvements and the obligor and surety, if and, shall be released from all liability, pursuant to such performance guarantee.

If any portion of the required improvements are rejected, the borough council may require the obligor to complete such improvements and, upon completion, the same procedure of notification, as set forth in this section shall be followed.

Nothing herein, however, shall be construed to limit the right of the obligor to contest by legal proceedings any determination of the borough council or the borough engineer.

The obligor shall reimburse the borough for all reasonable inspection fees paid to the borough engineer for the foregoing inspection of improvements; provided that borough may require of the developer a deposit for all or a portion of the reasonably anticipated fees to be paid to the borough engineer for such inspection.

In the event that final approval is by stages or sections of development pursuant to subsections 13-6.7b, 32 and 13-6.8b, 1 and 25 of this chapter and N.J.S.A. 40:55-D-38 the provisions of this section shall be applied by stage or section.